Exam 14: Financial Performance Measurement

Past performance is rarely a good indicator of future performance.

Using the following information from an annual report,prepare a horizontal analysis of the consolidated statements of earnings.(Round percentage answers to one decimal place.)

At the end of its first year of operations,Andrews Company calculated its depreciation expense using three different methods.Following are the calculations using these methods: Net income for Andrews Company using the straight-line method of depreciation is $92,000.Using this information,answer the following questions.calculate the following items: a.What would net income be using the double-declining balance method? b.What would net income be using the production method?

The following information pertains to Jasmin Corporation.Assume that all balance sheet amounts represent both average and ending figures. Jasmin Corporation had 6,000 shares of common stock issued and outstanding.The market price of Jasmin common stock on December 31,2013,was $20.Jasmin paid dividends of $0.90 per share during 2013. What is the return on equity for this corporation?

How would the collection of an account receivable affect the current ratio and the quick ratio,respectively?

Eva Gomez is considering investing money in the common stock of Casa Corporation.She has obtained the annual report of the company and calculated several financial ratios.Eva knows that her calculations are accurate,but does not know if the ratios indicate favorable or unfavorable things about the company.What three standards of comparison are available to Eva? What would each of the standards tell her about her ratios?

The debt to equity ratio indicates the extent to which a company is leveraged.

Inventory turnover is a measure of liquidity that focuses on the relative size of inventory.

A general rule in choosing among alternative investments is the greater the risk taken,the

Prepare a horizontal analysis by computing the amounts and percentage changes for the following balance sheet items; place your answers in the blanks provided.

Assuming that the current ratio was 1.6 times and the quick ratio was 1.4 times,the entry to record the payment of a previously declared and recorded cash dividend will

Determining the percentage change in an item from one year to the next is a type of horizontal analysis.

Rule-of-thumb measures are the best standards of comparison in financial performance evaluation.

All of the following are standard forms of the SEC,except

Horizontal analysis of comparative financial statements includes the

The following information pertains to Briscoe Corporation: Calculate the asset turnover ratio for 2013.Round your answer to two decimal places.

Prepare a trend analysis of the following data,using 2011 as the base year.Place your answers in the chart provided.Comment on the trend.

The choice of accounting method doesn't affect cash flows except for possible differences in

To find the most comprehensive information about a company's performance during the year,one would look to

In a common-size balance sheet,total assets are represented by 100 percent.